(Oslo, 28 June 2022) Standard Supply AS (Standard Supply) today announces the acquisition of the Platform Supply Vessel (PSV) Standard Defender for NOK 204 million as part of the growth strategy. 

“We are very pleased with the acquisition of the Standard Defender. The vessel will grow our asset base and is favorably priced at NOK 204 million, representing a discount of around 30% to the actual construction cost and 50% discount to current replacement cost. Furthermore, the vessel is a modern, large and well-recognized Norwegian-built PSV”, says Martin Nes, Chairman of Standard Supply. 

Standard Supply has entered into an agreement to acquire Standard Defender, a large PSV built at Vard, Norway, in 2019 with 900m2 deck space. The vessel is acquired for approximately 200 million, compared to original build price of around NOK 300 million and estimated replacement cost today of NOK 400-425 million.

The company will acquire 90% of the ownership in the vessel while the remaining 10% will be held by other shareholders. The vessel will be delivered charter-free in October 2022. Fletcher Shipping will be acting as technical and commercial manager for the vessel. 

The company currently has a cash holding of approximately USD 11 million after the cash settlement for Northern Supply AS shares and excluding cash- and working capital in the 51% controlled Northern Supply AS. In connection with the acquisition of the vessel and 2012 built mid-size PSV Standard Duke, the company has secured a revolving credit facility (RCF) with S.D. Standard ETC Plc for up to USD 20 million at a margin of 5%, upfront fee of 0.75% and maturity December 31th 2023. 

Following the acquisition, the company will control, directly and indirectly, a fleet of 9 PSVs; three (3) large PSVs 100% owned, one (1) mid-sized PSV 100% owned and five (5) medium-sized PSVs with 51% ownership interest. The acquisition will further strengthen the company's investment in the PSV market and is in accordance with its strategy to seek for additional opportunities in the market that will further enable the company to continue to grow its asset base.

Standard Supply is expected to be listed on Euronext Growth on or about July 22nd 2022. 

ENDS

For further information, please contact: 
Chairman of the Board Martin Nes at +47 92 01 48 14